Use the graphical approach to CVP analysis to solve the following problem.
CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD Solutions sells each disc for $2.50. The variable costs per disc are $1.00.
a) To just break even, how many CDs must be sold per month if the fixed costs are $60,000 per month?
b) What must sales be in order to have a profit of $7500 per month?

Question

Use the graphical approach to CVP analysis to solve the following problem. 
CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD Solutions sells each disc for $2.50. The variable costs per disc are $1.00.
a) To just break even, how many CDs must be sold per month if the fixed costs are $60,000 per month?
b) What must sales be in order to have a profit of $7500 per month?

Quizplus · Accepted Answer

The Answer of Use the graphical approach to CVP analysis to solve the following problem. 
CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD Solutions sells each disc for $2.50. The variable costs per disc are $1.00.
a) To just break even, how many CDs must be sold per month if the fixed costs are $60,000 per month?
b) What must sales be in order to have a profit of $7500 per month?

Use the Graphical Approach to CVP Analysis to Solve the Following